Pennsylvania Act 2007-68 — ENVIRONMENTAL RESOURCES (27 PA.C.S.) - UNIFORM ENVIRONMENTAL COVENANTS

act-2007-0-682007 Pa. Act 68Law

Act text
ENVIRONMENTAL RESOURCES (27 PA.C.S.) - UNIFORM ENVIRONMENTAL COVENANTS
                  Act of Dec. 18, 2007, P.L. 450, No. 68              Cl. 27
                             Session of 2007
                               No. 2007-68

     HB 43

                                  AN ACT

     Amending Title 27 (Environmental Resources) of the Pennsylvania
        Consolidated Statutes, providing for uniform environmental
        covenants.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Title 27 of the Pennsylvania Consolidated
     Statutes is amended by adding a chapter to read:
                                CHAPTER 65
                     UNIFORM ENVIRONMENTAL COVENANTS
     Sec.
     6501.  Short title of chapter.
     6502.  Definitions.
     6503.  Nature of rights; subordination of interests.
     6504.  Contents of environmental covenant.
     6505.  Validity.
     6506.  Relationship to other land-use law.
     6507.  Notice.
     6508.  Recording.
     6509.  Duration.
     6510.  Amendment or termination by consent.
     6511.  Enforcement of environmental covenant.
     6512.  Registry; substitute notice.
     6513.  Uniformity of application and construction.
     6514.  Relation to Electronic Signatures in Global and National
            Commerce Act.
     6515.  Environmental Quality Board.
     6516.  Appealable actions.
     6517.  Relationship to other laws.
      § 6501.  Short title of chapter.
        This chapter shall be known and may be cited as the Uniform
     Environmental Covenants Act.
      § 6502.  Definitions.
        The following words and phrases when used in this chapter
     shall have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Activity and use limitations."  Restrictions or obligations
     with respect to real property created under this chapter. The
     term includes engineering controls and institutional controls.
        "Agency."  Any of the following:
            (1)  The Department of Environmental Protection of the
        Commonwealth.
            (2)  A Federal agency which determines or approves the
        environmental response project pursuant to which the
        environmental covenant is created.
        "Board."  The Environmental Hearing Board.
        "Common interest community."  A condominium, cooperative or
     other real property, with respect to which a person, by virtue
     of ownership of a parcel of real property or of ownership of an
     interest in real property, is obligated to pay for property
     taxes, insurance premiums, maintenance or improvement of other
     real property described in a recorded covenant which creates the
     common interest community.
        "Department."  The Department of Environmental Protection of
     the Commonwealth.
        "Engineering controls."  Remedial actions directed
     exclusively toward containing or controlling the migration of
     regulated substances through the environment. The term includes
     slurry walls, liner systems, caps, leachate collection systems
     and groundwater recovery trenches.
        "Environmental covenant."  A servitude arising under an
     environmental response project which imposes activity and use
     limitations.
        "Environmental response project."  A plan or work performed
     for environmental remediation of real property, conducted:
            (1)  under a Federal program governing environmental
        remediation of real property;
            (2)  under a Commonwealth program governing environmental
        remediation of real property;
            (3)  incident to closure of a solid or hazardous waste
        management unit if the closure is conducted with approval of
        an agency; or
            (4)  under a Commonwealth voluntary cleanup program
        authorized by statute.
        "Holder."  A person that is the grantee of an environmental
     covenant as specified in section 6503(a) (relating to nature of
     rights; subordination of interests).
        "Institutional controls."  Measures undertaken to limit or
     prohibit certain activities which may interfere with the
     integrity of a remedial action or result in exposure to
     regulated substances at a site. The term includes fencing and
     restrictions on the future use of the site.
        "Land Recycling Act."  The act of May 19, 1995 (P.L.4, No.2),
     known as the Land Recycling and Environmental Remediation
     Standards Act.
        "Person."  Any individual, corporation, partnership,
     association or other entity recognized by law as the subject of
     rights, duties or obligations. The term includes the United
     States of America, a Federal agency, the Commonwealth, an agency
     or instrumentality of the Commonwealth and a political
     subdivision.
        "Record."  Information which is:
            (1)  inscribed on a tangible medium or stored in an
        electronic or other medium; and
            (2)  retrievable in perceivable form.
        "State."  A state of the United States, the District of
     Columbia, Puerto Rico, the United States Virgin Islands or any
     territory or insular possession subject to the jurisdiction of
     the United States.
      § 6503.  Nature of rights; subordination of interests.
        (a)  Nature.--Any person, including a person that owns an
     interest in the real property, or an agency may be a holder. An
     environmental covenant may identify more than one holder. The
     interest of a holder is an interest in real property.
        (b)  Rights of agency.--The rights of an agency under this
     chapter or under an approved environmental covenant, other than
     as a holder, are not interests in real property.
        (c)  Obligations.--An agency is bound by any obligation it
     assumes in an environmental covenant, but an agency does not
     assume obligations merely by signing an environmental covenant.
     Any person other than an agency that signs an environmental
     covenant is bound by the obligations the person assumes in the
     covenant, but signing the covenant does not change obligations,
     rights or protections granted or imposed under law other than
     this chapter except as provided in the environmental covenant.
        (d)  Rules.--The following rules apply to interests in real
     property in existence at the time an environmental covenant is
     created or amended:
            (1)  An interest which has priority under law other than
        this chapter is not affected by an environmental covenant
        unless the owner of the interest subordinates its interest to
        the covenant.
            (2)  As a condition to approval of an environmental
        covenant an agency may require that an owner of a prior
        interest subordinate that interest to the environmental
        covenant.
            (3)  A subordination agreement may be contained in an
        environmental covenant covering real property or in a
        separate record. If the environmental covenant covers
        commonly owned property in a common interest community, the
        agreement or record may be signed by any person authorized by
        the governing board of the owners association.
            (4)  An agreement by a person to subordinate a prior
        interest to an environmental covenant affects the priority of
        that person's interest but does not by itself impose an
        affirmative obligation on the person with respect to the
        environmental covenant nor affect that person's existing
        environmental liability.
      § 6504.  Contents of environmental covenant.
        (a)  Required information.--An environmental covenant must:
            (1)  state that the instrument is an environmental
        covenant executed pursuant to this chapter;
            (2)  contain a legally sufficient description of the real
        property subject to the environmental covenant;
            (3)  contain a brief narrative description of the
        contamination and the remedy;
            (4)  describe the activity and use limitations on the
        real property;
            (5)  identify every holder;
            (6)  be signed, with the formalities required for a deed,
        by:
                (i)  the agency, unless there is a deemed approval
            under subsection (c)(4);
                (ii)  every holder; and
                (iii)  every owner in fee simple of the real property
            subject to the environmental covenant, unless waived by
            the agency; and
            (7)  identify the name and location of any administrative
        record for the environmental response project reflected in
        the environmental covenant.
        (b)  Permitted information.--In addition to the information
     required by subsection (a), an environmental covenant may
     contain other information, restrictions and requirements agreed
     to by the persons who signed it, including:
            (1)  requirements for notice following transfer of a
        specified interest in, or concerning proposed changes in use
        of, applications for building permits for or proposals for
        any site work affecting the contamination on the property
        subject to the environmental covenant;
            (2)  requirements for periodic reporting describing
        compliance with the environmental covenant;
            (3)  rights of access to the property granted in
        connection with implementation or enforcement of the
        environmental covenant;
            (4)  restriction or limitation on amendment or
        termination of the environmental covenant in addition to
        those contained in sections 6509 (relating to duration) and
        6510 (relating to amendment or termination by consent);
            (5)  rights of the holder in addition to its right to
        enforce the environmental covenant under section 6511
        (relating to enforcement of environmental covenant); and
            (6)  a narrative description of the contamination and
        remedy, including the contaminants of concern, the pathways
        of exposure, limits on exposure and the location and extent
        of the contamination.
        (c)  Agency.--
            (1)  Prior to signing a covenant, an agency may review
        the covenant and provide its conditions for approval.
            (2)  In addition to other conditions for its approval of
        an environmental covenant, an agency may require those
        persons specified by the agency that have interests in the
        real property to sign the covenant.
            (3)  Except as set forth in paragraph (4), signature by
        an agency on an environmental covenant constitutes its
        approval of the environmental covenant.
            (4)  Failure of the department to approve or disapprove
        an environmental covenant within 90 days of receipt of all
        information reasonably required by the department to make a
        determination shall be deemed an approval of the
        environmental covenant.
            (5)  The department's decision to approve or not approve
        an environmental covenant is appealable to the board.
      § 6505.  Validity.
        (a)  Nature.--An environmental covenant which complies with
     this chapter runs with the land.
        (b)  Impediments excluded.--An environmental covenant which
     is otherwise effective is valid and enforceable even if:
            (1)  it is not appurtenant to an interest in real
        property;
            (2)  it can be or has been assigned to a person other
        than the original holder;
            (3)  it is not of a character that has been recognized
        traditionally at common law;
            (4)  it imposes a negative burden;
            (5)  it imposes an affirmative obligation on a person
        having an interest in the real property or on the holder;
            (6)  the benefit or burden does not touch or concern real
        property;
            (7)  there is no privity of estate or contract;
            (8)  the holder dies, ceases to exist, resigns or is
        replaced; or
            (9)  the persons identified as owner and holder in the
        environmental covenant are the same person.
        (c)  Prior instruments.--
            (1)  An instrument which creates restrictions or
        obligations with respect to real property which would, except
        for the fact that the instrument was recorded before the
        effective date of this chapter, qualify as activity and use
        limitations is not invalid or unenforceable:
                (i)  by reason of the limitations on enforcement of
            interests described in subsection (b); or
                (ii)  because it was identified as an easement,
            servitude, deed restriction or other interest.
            (2)  This chapter does not apply in any other respect to
        an instrument referred to in paragraph (1).
        (d)  Other interests.--
            (1)  This chapter does not invalidate or render
        unenforceable any interest, whether designated as an
        environmental covenant or other interest, which is otherwise
        enforceable under the laws of this Commonwealth.
            (2)  Nothing in this chapter shall be construed to
        restrict, affect or impair the rights of any person to enter
        into or record a restrictive covenant, institution control,
        easement, servitude or other restriction on the use of
        property permitted by law that does not satisfy the
        requirements of this chapter and does not have the
        permission, approval or consent of an agency, a political
        subdivision, a regulatory body or another unit of government.
        However, a restrictive covenant, institutional control,
        easement, servitude or other restriction on the use of
        property that does not satisfy the requirements of this
        chapter and does not have such permission, approval or
        consent is not subject to this chapter.
      § 6506.  Relationship to other land-use law.
        (a)  Effect on unauthorized uses.--This chapter does not
     authorize a use of real property which is otherwise prohibited
     by:
            (1)  zoning;
            (2)  law other than this chapter regulating use of real
        property; or
            (3)  a recorded instrument which has priority over the
        environmental covenant.
        (b)  Effect on authorized uses.--An environmental covenant
     may prohibit or restrict uses of real property which are
     authorized by zoning or by law other than this chapter.
      § 6507.  Notice.
        (a)  Recipients.--The owner or another person designated by
     the agency shall provide a copy of a signed environmental
     covenant as required by the agency to:
            (1)  all persons who signed the environmental covenant;
            (2)  all persons holding a recorded interest in the real
        property subject to the environmental covenant;
            (3)  all persons in possession of the real property
        subject to the environmental covenant;
            (4)  each political subdivision in which real property
        subject to the environmental covenant is located; and
            (5)  any other persons the agency requires.
        (b)  Effect.--Failure to provide a copy of the environmental
     covenant as required by the agency does not affect the
     environmental covenant's validity.
      § 6508.  Recording.
        (a)  Requirement.--An environmental covenant, any amendment
     or termination of the environmental covenant and a waiver under
     section 6510(a)(3)(i) or (b)(2) (relating to amendment or
     termination by consent) must be recorded in every county in
     which any portion of the real property subject to the
     environmental covenant is located. A recorded environmental
     covenant or a notice recorded under section 6512 (relating to
     registry; substitute notice) must be indexed in the grantor's
     index in the names of the owners of the real property subject to
     the environmental covenant and in the grantee's index in the
     name of the holder.
        (b)  Applicable law.--Except as otherwise provided in section
     6509(c) (relating to duration), an environmental covenant is
     subject to the laws of this Commonwealth governing recording and
     priority of interests in real property. Recording of an
     environmental covenant pursuant to the laws of this Commonwealth
     provides the same constructive notice of the environmental
     covenant as the recording of a deed provides of an interest in
     real property.
      § 6509.  Duration.
        (a)  Perpetual.--An environmental covenant is perpetual
     unless one of the following applies:
            (1)  It is limited by its terms to a specific duration or
        the occurrence of a specific event.
            (2)  It is terminated by consent under section 6510
        (relating to amendment or termination by consent).
            (3)  It is terminated under subsection (b).
            (4)  It is terminated by foreclosure of an interest which
        has priority over the environmental covenant.
            (5)  It is terminated or modified by judicial decree in
        an eminent domain proceeding, but only if:
                (i)  the agency which signed the environmental
            covenant consents to the judicial action;
                (ii)  all persons identified in section 6510(a) and
            (b) are given notice of the pendency of the eminent
            domain proceeding; and
                (iii)  the court determines, after hearing, that the
            termination or modification will not adversely affect
            human health or the environment.
        (b)  Judicial modification.--A court, in an action in which
     all persons identified in section 6510(a) and (b) have been
     given notice, may terminate or modify the environmental covenant
     on the real property subject to the environmental covenant if
     any of the following apply:
            (1)  The agency which signed an environmental covenant
        has determined that:
                (i)  the intended benefits of the environmental
            covenant can no longer be realized; or
                (ii)  changed circumstances indicate that the
            intended benefits can only be realized through
            modification of the environmental covenant.
            (2)  A standard allowing for a reopener of a completed
        environmental response project under section 505 of the Land
        Recycling Act is met.
        (c)  Other modifications.--Except as otherwise provided in
     subsection (a) or (b), an environmental covenant may not be
     extinguished, limited or impaired through:
            (1)  issuance of a tax deed;
            (2)  foreclosure of a tax lien; or
            (3)  application of the doctrine of adverse possession,
        prescription, abandonment, waiver, lack of enforcement or of
        a similar doctrine.
      § 6510.  Amendment or termination by consent.
        (a)  Signature.--An environmental covenant may be amended or
     terminated by consent only if the amendment or termination is
     signed by all of the following:
            (1)  The agency.
            (2)  Unless waived by the agency, the current owner in
        fee simple of the real property subject to the environmental
        covenant.
            (3)  Each person that originally signed the environmental
        covenant or that person's successor in interest unless:
                (i)  the person waived the right to consent in a
            signed record; or
                (ii)  a court finds that the person no longer exists
            or cannot be located or identified with the exercise of
            reasonable diligence.
            (4)  Except as otherwise provided in subsection (d)(2),
        the holder.
        (b)  Effect upon property interests subject to environmental
     covenants.--If an interest in real property is subject to an
     environmental covenant, the interest is not affected by an
     amendment of the covenant unless the current owner of the
     interest:
            (1)  consents to the amendment; or
            (2)  has waived in a signed record the right to consent
        to the amendment.
        (c)  Effect of assignment.--Except for an assignment
     undertaken pursuant to a governmental reorganization, assignment
     of an environmental covenant to a new holder is an amendment.
        (d)  Assignment requirements.--Except as otherwise provided
     in the environmental covenant:
            (1)  a holder may not assign its interest without consent
        of the other parties;
            (2)  a holder may be removed and replaced by agreement of
        the other parties specified in subsection (a); and
            (3)  a court of competent jurisdiction may fill a vacancy
        in the position of holder.
      § 6511.  Enforcement of environmental covenant.
        (a)  Parties.--A civil action for injunctive or other
     equitable relief for violation of an environmental covenant may
     be maintained by:
            (1)  a party to the environmental covenant;
            (2)  the agency or, if it is not the agency, the
        department;
            (3)  any other person to whom the environmental covenant
        expressly grants power to enforce;
            (4)  a person whose interest in the real property or
        whose collateral or liability may be affected by the alleged
        violation of the environmental covenant; and
            (5)  a political subdivision in which the real property
        subject to the environmental covenant is located.
        (b)  Regulatory authority.--
            (1)  This chapter does not limit the regulatory authority
        of the agency or the department under law other than this
        chapter.
            (2)  In addition to bringing an action under subsection
        (a), the department may issue any order necessary to enforce
        section 6517(b) (relating to relationship to other laws).
        (c)  Liability.--A person is not subject to liability for
     environmental remediation solely because the person has the
     right to enforce an environmental covenant.
      § 6512.  Registry; substitute notice.
        (a)  Registry.--The department shall establish and maintain a
     registry which contains all environmental covenants and any
     amendment or termination of those covenants. The registry may
     also contain any other information concerning environmental
     covenants and the real property subject to them which the
     department considers appropriate. The registry is a public
     record for purposes of the act of June 21, 1957 (P.L.390,
     No.212), referred to as the Right-to-Know Law.
        (b)  Notice.--After an environmental covenant or an amendment
     or termination of an environmental covenant is filed in the
     registry under subsection (a), a notice of the environmental
     covenant, amendment or termination which complies with this
     section may be recorded in the land records in lieu of recording
     the entire environmental covenant. The notice must contain:
            (1)  a legally sufficient description and any available
        street address of the real property;
            (2)  the name and address of the owner in fee simple of
        the interest in the real property, the agency and the holder
        if other than the agency;
            (3)  a brief narrative description of the contamination
        and the remedy;
            (4)  a statement that the environmental covenant,
        amendment or termination is available in a registry at a
        listed address of the department and a disclosure of the
        method of any electronic access; and
            (5)  a statement that the notice is notification of an
        environmental covenant executed under this chapter.
        (c)  Sample form.--A statement in substantially the following
     form, executed with the same formalities as a deed, satisfies
     the requirements of subsection (b):
            (1)  This notice is filed in the land records of the
        (insert the name of the county in this Commonwealth in which
        the property is located) of Pennsylvania pursuant to 27
        Pa.C.S. § 6512.
            (2)  This notice and the covenant, amendment or
        termination to which it refers may impose significant
        obligations with respect to the property described below.
            (3)  A legal description of the property is attached as
        Exhibit A to this notice. A brief narrative description of
        the contamination and the remedy is attached as Exhibit B to
        this notice. The address of the property that is subject to
        the environmental covenant is (insert address of property)
        (not available).
            (4)  The name and address of the owner of the fee simple
        interest in the real property on the date of this notice is
        (insert name of current legal owner of the property and the
        owner's current address as shown on the tax records of the
        county in which the property is located).
            (5)  The environmental covenant, amendment or termination
        was signed by (insert name and address of the agency).
            (6)  The environmental covenant, amendment or termination
        was filed in the registry on (insert date of filing).
            (7)  The full text of the covenant, amendment or
        termination and any other information required by the agency
        is on file and available for inspection and copying in the
        registry maintained for that purpose by the Department of
        Environmental Protection at (insert address and room of
        building in which the registry is maintained). The covenant,
        amendment or termination may be found electronically at
        (insert web address for covenant).
      § 6513.  Uniformity of application and construction.
        In applying and construing this chapter as a uniform act,
     consideration must be given to the need to promote uniformity of
     the law with respect to its subject matter among states which
     enact it.
      § 6514.  Relation to Electronic Signatures in Global and
                National Commerce Act.
        (a)  General rule.--Except as set forth in subsection (b),
     this chapter modifies, limits or supersedes the Electronic
     Signatures in Global and National Commerce Act (Public Law 106-
     229, 15 U.S.C. § 7001 et seq.).
        (b)  Exceptions.--
            (1)  This chapter does not modify, limit or supersede
        section 101(a) of the Electronic Signatures in Global and
        National Commerce Act (15 U.S.C. § 7001(a)).
            (2)  This chapter does not authorize electronic delivery
        of any of the notices described in section 103(b) of the
        Electronic Signatures in Global and National Commerce Act (15
        U.S.C. § 7003(b)).
      § 6515.  Environmental Quality Board.
        (a)  Regulations.--The Environmental Quality Board has the
     power and duty to promulgate regulations for the proper
     performance of work of the department under this chapter. This
     subsection includes the establishment of fees under this
     chapter.
        (b)  Fees.--Fees under subsection (a) shall be deposited into
     the Industrial Land Recycling Fund.
      § 6516.  Appealable actions.
        Actions of the department under this chapter shall be
     considered appealable actions under the act of July 13, 1988
     (P.L.530, No.94), known as the Environmental Hearing Board Act.
      § 6517.  Relationship to other laws.
        (a)  Prospective environmental response projects.--
            (1)  Unless waived by the department, engineering
        controls or institutional controls required to demonstrate
        attainment of a remediation standard under the Land Recycling
        Act or the act of July 6, 1989 (P.L.169, No.32), known as the
        Storage Tank and Spill Prevention Act, shall be in the form
        of an environmental covenant.
            (2)  If a deed acknowledgment is required by section 405
        of the act of July 7, 1980 (P.L.380, No.97), known as the
        Solid Waste Management Act, or section 512(b) of the act of
        October 18, 1988 (P.L.756, No.108), known as the Hazardous
        Sites Cleanup Act, the requirement may be satisfied by
        reference to an environmental covenant recorded pursuant to
        this chapter.
            (3)  An environmental covenant shall not be required for
        property owned by the Federal Government prior to transfer of
        the property to a non-Federal entity or individual. Activity
        and use limitations on Federal property shall be incorporated
        into an installation's master plan or other similar and
        appropriate remedial documentation. Nothing in this paragraph
        shall limit any authority otherwise available to the
        department to enforce terms of an environmental response
        project at a Federal installation or on property owned by the
        Federal Government.
        (b)  Conversion to environmental covenant.--
            (1)  An instrument created prior to the effective date of
        this section which establishes activity and use limitations
        to demonstrate attainment or maintenance of a standard under
        the Land Recycling Act or to demonstrate satisfaction of a
        corrective action requirement under the Storage Tank and
        Spill Prevention Act shall be converted to an environmental
        covenant within 60 months of the effective date of this
        section unless conversion is waived by the department.
            (2)  Failure to comply with this subsection does not
        invalidate the existing engineering controls and
        institutional controls described in paragraph (1) or preclude
        the conversion of those engineering controls and
        institutional controls to an environmental covenant at a
        later date.
        Section 2.  This act shall take effect in 60 days.

     APPROVED--The 18th day of December, A. D. 2007.

     EDWARD G. RENDELL

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